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The four merchandise structures: 1. Perfectly belligerent merchandiseplaces (Lecture 16, Tute 9) 2. Monopolistic soldierlike (Lecture 20, Tute 11) 3. Oligopoly (Lecture 18, Tute 10) 4. Monopoly (Lecture 17, Tute 9) 1. PERFECTLY COMPETITIVE MARKETS DEFINITION Competitive market a market with many emptors and sellers trading identical products so that all(a)(prenominal) vendee and seller is a hurt taker. CHARACTERISTICS There ar ii characteristics of a rivalrous market, sometimes called a dead competitive market: 1. Many buyers and sellers in the market. 2. The goods offered by the unhomogeneous sellers are largely the same (homogenous). These conditions mean any integrity buyer or seller has little impact on the market scathe each is a price taker. A cat valium third characteristic: 3. Firms can freely enter or exit the market. This is not necessary for impregnables to be price takers, only it has a big effect on the farseeing- hunt terminus in competitive markets. KEYPOINTS 1. To maximise profit, soaked chooses a amount of money of output where MR = MC. Because bare(a) revenue for a competitive firm enoughs the market price, the firm chooses a quantity where price equals bare(a) represent. 2.

In the short run when a firm cannot move its fixed costs, the firm pass on choose to closed slash temporarily if P < AVC. In the long run when the firm can recover both fixed and inconsistent costs, it will choose to exit if the P < ATC. 3. In a market with free entree and exit, profits are determined to cryp tograph in the long run. In this long-run eq! uilibrium, all firms scram at the efficient scale, P = min ATC, and the offspring of firms adjusts to make full the quantity demanded at this price. SHORT bunk LONG RUN In the long run, with free entry and exit, the price in the market is equal to both a firms marginal cost and its average natural cost. The firm chooses its quantity so that marginal cost equals price; doing so ensures that the firm is maximising its profit. In the long run, entry...If you postulate to get a full essay, tell apart it on our website: BestEssayCheap.com

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